Bitcoin, Ethereum, Dogecoin In Red As GBTC Bleeding Continues: Analyst Says Massive Correction For King Crypto Is On The Cards

Main cryptocurrencies continued to drop on Tuesday night as institutional gross sales linked to just lately launched exchange-traded funds (ETFs) continued to exert downward stress on BTC.

What Occurred: Latest promoting stress on Bitcoin has been linked to gross sales from the FTX chapter property, which has offloaded round 22 million shares of Grayscale’s GBTC previously few weeks. 

On-chain evaluation agency CryptoQuant was one of many few to take a position that the ETF approval would culminate in a “sell-the-news” occasion. The time period “promote the information” is a well-known idea in capital markets, illustrating how asset costs, leverage, and sentiment drive costs larger previous to a bullish occasion, just for costs to say no shortly thereafter.

Since its conversion to a spot Bitcoin ETF on Jan. 11, GBTC has skilled over $3.4 billion in outflows. Grayscale subsequently deposited billions in Bitcoin to crypto alternate Coinbase Prime, possible on the market.

Bloomberg ETF analyst Eric Balchunas reported an outflow of $515 million on Jan. 23, leading to a 13% discount in shares excellent. Nevertheless, he famous that the newest knowledge signifies a possible slowdown within the outflow.

The current outflows have been linked to defunct crypto alternate FTX, which reportedly offered two-thirds of 22.3 million shares in GBTC over three days of buying and selling. FTX is believed to nonetheless maintain round 8 million shares, value roughly $281 million, but to be offered.